Scammers Continue to Target Utility Customers Threatening Disconnection Unless Payment Made
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Scammers Continue to Target Utility Customers Threatening Disconnection Unless Payment Made

The scammers claim that there is a problem with the victim's utility account such as an overdue bill and demands an immediate payment to avoid disconnected service

August 8, 2025

Across North Carolina and beyond consumers keep reporting aggressive phone calls and texts from fraudsters posing as utility representatives. The caller ID may even display your provider’s name such as Duke Energy or Piedmont Natural Gas. The scammers demand immediate payment, often within an hour—to avoid service disconnection. They rely on fear and urgency to trick victims into sending money by wire transfer, prepaid gift cards or cryptocurrency. Understanding how the scam works, knowing your rights under state regulations and using available assistance programs will help you avoid falling victim.

How the Disconnection Scam Operates

Scammers use caller ID spoofing technology to make it look like the call is coming from your actual utility company. You may hear recorded messages or music on hold designed to mimic a real call center. Typical ploys include:

  • Pretending your account is severely overdue and threatening shutoff within 30 to 60 minutes
  • Claiming a “government assistance program” or “COVID relief fund” will only apply if you provide your Social Security number and bank routing number
  • Offering to transfer you to a “supervisor” or another department who reinforces the threat
  • Asking you to pay via wire transfer services such as Western Union or MoneyGram, prepaid debit or gift cards, or cryptocurrency to make the transaction irreversible

The goal is to rush you into payment before you have time to verify. Once scammers get your money or personal data they disappear and victims rarely recover funds.

Recognizing the Warning Signs

Any insistence on immediate payment without a proper written notice is a red flag. Legitimate utilities in North Carolina must follow disconnection procedures regulated by the Public Staff of the Utilities Commission. Before shutting off service they send at least two written notices, one at least 10 days before disconnection and another five days before—by mail or electronic delivery if you’ve opted in. They never demand payment via gift card or cryptocurrency. If you receive an urgent call or text:

  • Hang up immediately
  • Do not provide personal information or payment
  • Contact your utility using the customer service number on your bill or their official website

North Carolina Disconnection Rules and Protections

Under North Carolina rules utilities cannot disconnect residential service for nonpay­ment from November 1 to March 31 unless the customer has a medical certificate on file that expires within seven days. Outside that winter period they must:

  • Provide a written notice at least 10 days before disconnection
  • Make a reasonable attempt to contact you by phone or door hanger if mail is undeliverable
  • Offer to establish a payment plan if you cannot pay in full

If you are on the Low Income Energy Assistance Program you receive additional protections and may qualify for benefits that cover part of your past due balance.

Utility Assistance Programs in North Carolina

If you struggle to pay your bill these state and federal programs can help:

  • Low Income Energy Assistance Program (LIEAP) provides one-time winter heating assistance up to $1,000 based on income and household size. Apply through your county Department of Social Services.
  • Neighbor to Neighbor is a utility-funded charity that helps cover past due energy bills. Contact your utility’s payment assistance department to be referred.
  • North Carolina Housing Finance Agency offers emergency rental and utility assistance grants. Eligibility varies by county and funding availability.

Reporting and Recovering from a Scam

If you or a loved one have sent money or shared sensitive information:

  • Contact the payment provider immediately to request a recall or freeze. For wire transfers call Western Union or MoneyGram customer service
  • Report the scam to the Federal Trade Commission at reportfraud.ftc.gov and the FBI’s Internet Crime Complaint Center at ic3.gov
  • Notify the North Carolina Attorney General’s Consumer Protection Division at (919) 814 5400 or file online through the AG’s website
  • Contact your bank or credit union to monitor for unauthorized transactions and place fraud alerts on your credit reports with Equifax Experian and TransUnion

Best Practices to Protect Yourself

  • Verify written notices, wait for your mailed or e-mailed disconnection notice before taking action
  • Keep utility contact info handy, store your provider’s official phone number and website in your phone contacts
  • Register for paperless billing, opt in for e-bills and e-mail reminders so you never miss a notice
  • Set up auto-pay or payment arrangements, most utilities allow splitting your bill into equal monthly payments
  • Use call-blocking features, many smartphones and landlines can block spoofed numbers and robocalls
  • Educate older family members, share these scam warning signs with parents or grandparents who may be targeted

When in Doubt Contact Your Utility Directly

True utility representatives will never:

  • Demand immediate payment in a single hour without prior written notice
  • Require payment via gift card or cryptocurrency
  • Ask for your full Social Security number or bank routing number over the phone

If you receive a suspicious call hang up and dial the number printed on your bill. Confirm your account status and any legitimate payment options. Taking a few extra minutes to verify can save you from losing hundreds or thousands of dollars and protect your personal data.